The year 2021 saw the highest residential registrations in Mumbai Metropolitan Region (MMR) with realtors selling 2,42,000 units of homes, a 53% increase from 2020 and a 20% increase over 2019, as per statistics jointly released by CREDAI MCHI, Colliers and CRE Matrix.
The rise in residential sales was driven by multiple factors including a cut in stamp duty and reduction in home loan rates, rationalisation in realty prices, pent-up demand, higher inclination towards owning homes or aspiration to have bigger homes, as per the report.
The Maharashtra government had reduced stamp duty charges from 5% to 2% for all residential transactions between September and December 2020 and stamp duty was 3% for the subsequent quarter of January to March 2021, before it was brought back to 5%.
Central Mumbai, covering Dadar, Lower Parel, Worli, Sewri, Mahim, Matunga, Parel, Wadala, saw the maximum revival in sales in 2021. Registrations in the region rose 93% from 2019 and 71% from 2020. Thane accounted for the highest number of registrations with a 42% share and the highest stamp duty collection. Overall, the state’s stamp duty collection increased to ₹11,000 crore in 2021 from ₹3,500 crore in the previous year, as per the report.
Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers said, “The year 2021 has definitely been a good year for homebuyers. The numbers show how sops at the right time can boost demand across the segments. If the demand persists in a similar trend, led by huge propensity to purchase, the market will see better demand-supply equilibrium in 2022.’‘
``Premium reductions led to 5x collections as compared to an average year. Almost ₹1.30 lakh crore worth of residential flats were sold in the period of October 2020 to March, 2021. All of these led to an indirect collection of GST wherein the state received 9% of the construction costs as GST & further 2.5% GST on the value of apartments sold,’‘ said Boman Irani, Incoming President of CREDAI-MCHI (The Maharashtra Chamber of Housing Industry).
